(PHOTO: REUTERS)
The Non-Manufacturing Report On Business (NMI), the Institute for Supply Management’s gauge of U.S. service sector growth fell to 53.4 from 53.5 in January. Still, the NMI beat the median forecast, which called for a sharper decline to 53.2. Economic activity in the non-manufacturing sector grew in February for the 73rd consecutive month, as readings above 50 even if they fall indicate contraction.
Readings below 50 indicate contraction.
The 14 non-manufacturing industries reporting growth in February—listed in order—are: Accommodation & Food Services; Management of Companies & Support Services; Real Estate, Rental & Leasing; Utilities; Construction; Finance & Insurance; Transportation & Warehousing; Professional, Scientific & Technical Services; Public Administration; Health Care & Social Assistance; Agriculture, Forestry, Fishing & Hunting; Educational Services; Information; and Wholesale Trade. The three industries reporting contraction in February are: Mining; Arts, Entertainment & Recreation; and Retail Trade.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* FEBRUARY 2016 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Feb |
Series Index Jan |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Feb |
Series Index Jan |
Percent Point Change |
| NMI®/PMI® | 53.4 | 53.5 | -0.1 | Growing | Slower | 73 | 49.5 | 48.2 | +1.3 |
| Business Activity/Production | 57.8 | 53.9 | +3.9 | Growing | Faster | 79 | 52.8 | 50.2 | +2.6 |
| New Orders | 55.5 | 56.5 | -1.0 | Growing | Slower | 79 | 51.5 | 51.5 | 0.0 |
| Employment | 49.7 | 52.1 | -2.4 | Contracting | From Growing |
1 | 48.5 | 45.9 | +2.6 |
| Supplier Deliveries | 50.5 | 51.5 | -1.0 | Slowing | Slower | 2 | 49.7 | 50.0 | -0.3 |
| Inventories | 52.5 | 51.5 | +1.0 | Growing | Faster | 11 | 45.0 | 43.5 | +1.5 |
| Prices | 45.5 | 46.4 | -0.9 | Decreasing | Faster | 2 | 38.5 | 33.5 | +5.0 |
| Backlog of Orders | 52.0 | 52.0 | 0.0 | Growing | Same | 2 | 48.5 | 43.0 | +5.5 |
| New Export Orders | 53.5 | 45.5 | +8.0 | Growing | From Contracting |
1 | 46.5 | 47.0 | -0.5 |
| Imports | 55.5 | 46.0 | +9.5 | Growing | From Contracting |
1 | 49.0 | 51.0 | -2.0 |
| Inventory Sentiment | 62.0 | 61.5 | +0.5 | Too High | Faster | 225 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 47.0 | 51.5 | -4.5 |
| Overall Economy | Growing | Slower | 79 | ||||||
| Non-Manufacturing Sector | Growing | Slower | 73 | ||||||
* Non-Manufacturing ISM® Report On Business® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment Indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries.
** Number of months moving in current direction.
